You could not make this up! Do they give Nobel Prizes in Economics for destroying an economy. Let's take a look at our "Obama Portfolio", yes we know things are bad and getting worse but having a new set of cheerleaders driving the lemmings over the cliff does not help! The portfolio of core good we have been tracking is now looking at an annualized drop of almost 80%. Now for those concerned about a Depression, welcome it has arrived.
As to inflation, the Dividend yield curve above shows what we expect, in excess of 20%. Thus with 20% inflation, 80% market collapse, 12% unemployment, in three years they can bring back the Ronald Reagan phrase, "Are you better today than four years ago?" and it will evoke a drastically different answer.
To add to this we have been analyzing the Cap and Trade scams. If you like the CDS, the swaps, then this one will far exceed the gains we made there. We have heard, unverified however, that Al Gore has financial interests, in the markets for CO2 caps. The trades themselves will generate billions amongst a few. Then there is the massive added costs to Americans, residential electricity we estimate will treble in ten years, or sooner, production costs with also double, and the case goes on and on. We also see multiple points of economic instability in this system as the financial geniuses that brought you the current mess get into CO2 derivatives. We hope to have our analysis complete in a month.
Now for a dreadful scenaroi:
1. Market collapses totally
2. Unemployment hits 20% and taxes drives out money
3. Liquidity disapperas
4. Cap and Trade explodes energy prices
5. Healthcare unbridled under Government overhead collapses
6. Eastern Europe falls economically
7. Russia collapses financially and moves to Easter Europe to protect borders
8. Western Europe starts to collapse
9. Election season of 2012 starts!
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